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Axis Bank Car Loan Interest Rate

Axis Bank Car Loan Interest Rate Jul 2020

Last Updated 18th Jun 2020

Axis Bank New Car Loan interest rate starts from 9.25% . These are Fixed rate loans and are one of the best car loan rates in India. Rate of interest vary by borrower occupation, loan amount and loan tenure.

Features New Car Loan Used Car Loan
Loan Tenure Upto 8 years Not Available
Lowest EMI ₹ 1,478 per lakh ₹ 0 per lakh
Loan Amount Upto 90% of ex-showroom price Not Available
Prepayment Charges 5% of outstanding principal Not Available

High eligibility of up to 95 per cent of the ex show room price on select models

Axis Bank Car Loan

Axis Bank gives car loan to borrowers who need funds to buy a new car. Benefits of taking vehicle loan from Axis Bank are:

  • High eligibility of up to 95 per cent of the ex show room price on select models
  • Special Offers for Axis Salary Account Holders, priority banking and wealth banking
  • Earn Axis eDGE rewards for completing transactions

Axis Bank Car Loan Interest Rate

Axis Bank Car Loan interest rate depends upon following factors -

  • Loan amount: Generally banks offer lower interest rates for higher amount. Axis Bank offers 90% of ex-showroom price of your car.
  • Your Salary: Higher salary bracket individuals are offered loans at lower interest rates. Car Loan interest rate Axis Bank varies with your net monthly income.
  • Employer Category: Employer category of the borrower is a major deciding factor in order to determine his/her rate of interest. Axis Bank has a list of company categories of salaried individuals to which they avail vehicle loan. So, higher company category leads to low Axis Bank car loan rate.
  • Relationship with the Bank: Axis Bank offers special rates, offers and charges to the existing account holders of the bank. Those who have managed their accounts and made all the payments on time in past will get benefit of low vehicle loan interest rate.
  • Loan Tenure: Axis Bank vehicle loans are of longer repayment tenure of 8 years.
  • Repayment Capacity: Before giving loan to the borrower, Axis Bank checks the repayment capacity of the borrower. Bank verifies the repayment capacity of the customer through CIBIL as it has all the details of previous loans taken and their repayments. CIBIL also gives the information of credit card bills payment.

Axis Bank Car Loan Eligibility

The following table depicts the various eligibility criteria for availing a vehicle loan.

Eligibility Criteria Eligibility Details
Age 21 years - 70 years
Minimum Annual Income Salaried: ₹ 2.40 Lakhs
Self Employed Professionals: ₹ 1.80 Lakhs
Self Employed Businessmen: ₹ 1.80 Lakhs
Minimum Credit Score 700 and above
Loan Tenure 8 years
Loan to Value Ratio 90% of ex-showroom price

Car loan eligibility relies upon different factors but the most important factor is your ability to repay the loan. The main factors on which the eligibility of an applicant depends are:

Age: Age plays an important role to know your eligibility and repayment capacity. Axis Bank offers auto loan to those who are atleast 21 years old at the time of loan approval and maximum 70 years at the time of loan maturity.

Income: Axis Bank car loan calculator calculates your eligibility based upon your income. Usually bank set minimum levels of income to apply for car loan. Axis Bank asks for net annual income of minimum Rs. 2.40 lakhs.

Job stability and Profession: Job stability is important to improve your status and eligibility for vehicle loan from Axis Bank. If you are working with a reputed company, probability of getting car loan increases as the income is considered to be more stable and bank offers best Axis Bank car loan interest to the employees of reputed companies.

CIBIL Score: Your past CIBIL history and repayment record of existing loans and credit cards has a direct impact on your Axis Bank car loan eligibility. If you have a poor repayment record, then you may not get the loan but on the other side, a regular repayment record increases your vehicle loan eligibility. Generally, Bank give loan at a CIBIL score of 700 and above.

Loan Amount: Axis Bank auto loan amount depends upon your income. Axis Bank gives 100% of ex-showroom price depending upon the value of the car. To improve chances of approval, apply for a loan amount that you can comfortably service and check your Axis Bank car loan status online and avial multiple benefits.

Axis Bank Car Loan Calculator

Car Loan EMI of Axis Bank is a fixed amount that you pay each month towards the repayment of your car loan till the end of tenure. Lowest EMI offered by Axis Bank is Rs. 1,478 per lakh loan amount at lowest car loan interest rate of 9.25%. Car Loan EMI of Axis Bank depends on factors like:

  • Rate of interest is an important factor which affects your EMI. Higher the interest rate, higher will be the EMI.
  • Loan tenure matters equally as longer tenure reduces your monthly EMI per lakh.
  • Your EMI depends upon the amount of loan you are going to borrow. Loan EMI will be high if you apply for a high loan amount.
Axis Bank EMI Car Loan Calculator
  • Car loan EMI calculation varies from bank to bank depending upon the method of calculation.
  • The standard convention should be to use the EMI in arrears method on reducing balance basis – whereby you pay interest on the loan amount outstanding on a reducing basis at or after the end of the month.
  • Simply key in the loan amount, rate of interest and vehicle loan tenure here and check the EMI amount using the vehicle loan EMI calculator here. In case the EMI amount displayed is different from the one advised to you by the agent, you must check the calculation basis with your vehicle loan agent.

Illustration

You can calculate the monthly payment (EMI) yourself using the following equation

E= P. r. (1+r)n/[(1+r) n -1]

Where,

  • P represents the principal amount that you want to apply for.
  • r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
  • n is the tenure of loan in months
  • E represents the monthly payment or EMI

Let’s say you take out a vehicle loan for Rs. 700,000 to be paid back over 5 years at an interest rate of 9.25%. Your monthly payments for this loan after applying the above formula would be Rs. 14,616 for 5 years.

Axis Bank Auto Loan Fee and Charges

Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. Axis Bank allows prepayment of vehicle loan after paying 1 EMI with prepayment 5% of outstanding principal.

Processing Fee - Axis Bank asks for a processing fee of 0.00% of loan amount. Min. Rs. 3500 and Max. ₹ 5,500 with applicable service tax.

Axis Bank Car Loan Top up, Balance Transfer

  • Axis Bank offers car loan balance transfer from another bank. This is subject to your meeting other eligibility criteria
  • You can avail additional top-up car loan from Axis Bank, subject to your eligibility

Documents required for Axis Bank Car Loan

Salaried Employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car

Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car.

FAQs

What is car loan interest rate offered by Axis Bank ?

As per current interest rates, Axis Bank car loan interest rates are in the range of 9.25%to 11.50%.

What is the lowest EMI per lakh on Axis Bank car loan?

Lowest EMI per lakh is ₹ 1,278 for Axis Bank for a loan availed at an interest rate of 9.25% and for a tenure of 8 years.

What is the maximum tenure of Axis Bank car loan?

You can repay your Axis Bank car loan in a flexible period of 8 years.

How much processing fee is charged by Axis Bank on car loan?

Axis Bank charges a processing fee of Min.₹ 3,500 and Max. ₹ 5,500 with applicable service tax.

How much car loan I can borrow from Axis Bank?

Axis Bank offers you 90% of ex-showroom price of car as loan.

Is age an eligibility factor to get car loan from Axis Bank?

Yes, age is an important eligibility factor to get Axis Bank car loan as you should be at least 21 years old at loan approval time and 70 years old at loan maturity time.

Are there any prepayment charges on Axis Bank car loan?

You can take car loan from Axis Bank with prepayment 5% of outstanding principal.

Can I add my spouse's income while applying for car loan from Axis Bank ?

You can combine your income with the income of your spouse to increase your loan eligibility and to get higher loan amount.


Axis Bank Car Loan Reviews 4.2/5  by 3 customers
MyLoanCare Service
4/5.0
Banks Service
4.3/5.0
Shiv Machaiah, Bangalore
Reviewed on 16th Mar 2018
5 / 5 stars
Axis Bank Car Loan Availed in Jan 2017

My Loan Care person was quite helpful and gave information in detail. Read more...

Khushbu Gupta, Kota
Reviewed on 12th May 2017
4.5 / 5 stars
Axis Bank Car Loan Availed in Apr-18

I have an ongoing loan with Axis which is running absolutely fine.Read more...

Mayur Chabbra, Agra
3 / 5 stars
Axis Bank Car Loan Availed in Jul-17

No pre closure option, otherwise good service.Read more...

Axis Bank Car Loan News - Jul 2020
  • 2019-02-13 : Kia Motors joins hands with Axis Bank for financing solutions
    Kia Motors has announced its tie with Axis Bank for banking and financing solutions. As a part of this agreement, the private sector lender will now offer one-stop banking and financing solutions such as inventory funding, cash credit and auto loans to the dealers and customers of Kia Motors.
  • 2018-07-18 : Axis Bank keeps MCLR unchanged
    Axis Bank has kept its MCLR unchanged in all tenors. These rates are effective from July 18,2018. Consequently, the MCLR remains in the range of 8.10% to 8.75%.
  • 2018-06-18 : Axis Bank raises MCLR by 10 bps, leading to hike in loan rates
    The third largest private sector lender Axis Bank has hiked its lending rates by a marginal 0.10 percentage points across all tenors. The change stands effective from June 18, 2018. The one-year MCLR is now at 8.60%, and six month MCLR is at 8.50%.
  • 2018-04-27 : Housing & auto demand driver loan growth
    Higher income states like Maharashtra and Gujarat have been the key drivers of retail loans in India between FY 13 and FY17, according to the Reserve Bank of India (RBI). Total loan growth during this period was merely 9% but retail loans grew strongly at 16% due to growth in housing and auto loans. The average ticket size of retail loans also increased by 14% annually between FY13 and FY17.
  • 2018-03-13 : Auto loan performance stable in Q4 of 2017
    Auto loan performance has stabilised in Q4 of this fiscal. The transition to the new BS-IV vehicle emissions standards and the rollout of GST in July 2017 are expected to keep auto loan delinquencies stable at around current levels in 2018. The performance has been supported by gradually strengthening economic activity.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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